NSW looking to change stamp duty !! We might finally free up the buying and selling of property somewhat. Many clients of ours would like to sell and stamp duty is a big consideration in the decision that usually tips an idea from achievable to not. As this cost is considered “dead money” by some.
Moving stamp duty to an annual rates based model, especially when buying a house that is not your forever home makes sense. Lets say you want to take a regional job, don’t want to rent but also you didn’t want to lose the stamp duty if you move back to the city after a couple of years. Now you could just purchase and minimise the expense of trying something new. Obviously there are still agent fees to consider. But this is a significant reduction to barriers around movement. Given the year of 2020 is the year of work from home for many of us. This could make moving to a tree or sea change location quite a bit easier.
We are also liking the option to pay stamp duty upfront, for those planning on owning long term. It will be interesting to see the break even point. Along with the amount they will charge per annum and how it is calculated.
No doubt the renovate and sell market will greatly benefit from this. Making this style of transaction (or business) more profitable. As the large upfront funds will no longer required or paid.
People that have owned in the past and are trying to get back in the market will also benefit, as this means the funds required to purchase will be reduced, giving more money to use as deposit. First home buyers that are outside the no stamp duty caps will also benefit in the same way
I suspect if passed this will be picked up by the other states as well. As this will make the NSW market an easier one to transact in.
South Australia already has no stamp duty on commercial transactions. Perhaps they will be the next to look at this. Given they already have a head start.